2Sustain

Sustainable procurement initiatives. Mention those three words to someone in business, and you’re likely to start a conversation about one of two things: either programs to meet international regulatory requirements or strategies to drive domestic sales and marketing efforts. For a few savvy companies, however, sustainable procurement initiatives are starting to mean a lot more. These companies are going beyond the CSR side of green and finding that sustainable supply chains can also mean increased profits, decreased risks, and an overall enhancement of their position in today’s ultra-competitive marketplace.

In short, the definition of sustainability is evolving. More than ever before, successful companies are discovering that green is a bottom-line issue –one that permeates all aspects of a business, including sourcing strategies. But, how do these companies make it happen? How do they execute green procurement initiatives when most traditional sourcing models are too inflexible to be compatible with sustainability? Can rigid sourcing processes be tweaked to accommodate “soft factors,” such as safety, quality, environmental concerns, and supplier stability?

If you’re looking for answers to questions like these (and who isn’t?), check out Spend Matters new perspective “Redefining Sustainability: Saving Money, Reducing Risk and Going Green.” Jason Busch does an excellent job of clarifying and illuminating the thorny intersection where sustainability meets sourcing. And then, he goes a step further, by citing several case examples where companies have benefited by expanded their definition of sustainable procurement initiatives to include savings, cost avoidance, and risk reduction. The report also lists five specific strategies that can help your business achieve sustainable sourcing results. (Maybe it’s time to break out of that “stage-gate” sourcing mindset?)

Here are the two fundamental points to remember: 1) green is green, and 2) you can maximize your green impact by focusing on your supply chain. Today’s successful companies are melding these two points into their business plan. They’re redefining sustainable procurement initiatives and discovering bottom-line benefits –and you can, too. Take a look at the Spend Matters perspective. You’ll find the information you need to get your process started.